The article by Roxburgh uncovers a set of essential flaws in strategic management from the perspective of the behavioral economics. First, the author pinpoints the overconfidence. In the case of the need to start a new business, it might be useful, however, a person’s brain sometimes is overconfident in making decisions and assessments. For example, people tend to give narrow answers to rather precise questions like the River Nile length. Instead of giving an accurate answer, people miss the point. Likewise, the overoptimism goes in line with the human brain as people believe that it is exactly their business that is of "above-average" value. In this regard, Roxburgh (2003) provides three potential solutions such …show more content…
Beatty claims that the board of directors cannot be regarded as sinecure because of both external and internal circumstances such as social changes, market failures, and others. In this connection, the competitive environment becomes the best area for the board’s operation while the chair and CEO should take separate roles. In order to limit directors, the interviewee supposes to establish 9 to 12 year of their performance so that the decisions of the board would be timely and innovative. What is more, the board members should develop their knowledge to remain competitive and sustainable. Another issue under the discussion is the company’s short- and long-term performances. Beatty stresses that the short-termism is the peculiar trait of the US as the majority of other global markets are family controlled, but there should be no contrast between the CEO and the board (Hitt, Ireland, & Hoskisson, 2015). At the same time, CFOs should pay attention to their relationships with the board of directors reacting and responding emotionlessly and independently to ensure the right …show more content…
Focusing on four principally important products, he created the global corporation. To concentrate, Jobs learned the training of Zen. He ruthlessly filtrated everything that he considered a distraction. Simplification is the second lesson. It is undoubtedly important to make things simple so that one can see the core of the issue. In his turn, Jobs learned simplicity while playing Atari. The lesson of the full responsibility comes next and reflects the integration of hardware, software, and peripheral devices of Apple. Jobs and Apple have taken full responsibility for their customers beginning from ARM microprocessor operation to iPhone purchase and the Apple Store. In other words, all the aspects of customer service are closely related to each other. Accordinп to Hitt, Ireland, and Hoskisson (2015), the competitiveness is one of the paramount elements of success. Jobs is completely consent with the above statement. Moreover, he put products before profits acquiring the customers’ loyalty and expanding the focus groups. Jobs blurred barriers and created a compelling alternative reality to impute and push for perfection. To achieve such high results, he tolerated only the best players, conducted face-to-face negotiations, learned both the big picture and the details, and combined the humanities with the sciences. Finally, Jobs stayed hungry for